TODAY |

Environmental taxes on the table in what could be NZ's biggest tax system shake-up in 30 years

While the suggestion of a capital gains tax got the most attention today after the Tax Working Group released its long-awaited report, a range of environmental taxes are also on the table in what could be the biggest shake-up of New Zealand's tax system in 30 years. 

Among the suggestions today was a congestion tax aimed at larger cities and towns.

Sir Michael Cullen, Tax Working Group chairman, says the goal is to get people paying who use our biggest roads.

A tax like this would likely be electronic, but a crackdown on emissions could see the previously excluded farming sector pay up.

Another suggestion pitched by the group is raising the cost of carbon units, used to offset emissions, to a minimum of $25 per tonne.

A water tax is also on the table, but the report says Māori rights and interests must be addressed first.